Limited Liability Protection

• Each partner’s liability is limited to their agreed capital contribution.
  
• Partners are not personally liable for the debts or losses of the LLP.
  
• Personal assets of partners are protected from business liabilities.s
  
• Liability remains limited even if the LLP incurs financial losses.
  
• This protection applies unless the partner is involved in an unlawful act.s
  

Protection from Other Partners’ Actions

• One partner is not liable for the independent actions of another partner.
  
• Liability does not arise merely by association with other partners’ misconduct.
  
• Each partner acts as an agent of the LLP, not of another partner.s
  
• The LLP itself is liable for obligations arising from a partner’s lawful act.s
  
• This reduces risk from negligence or errors of co-partners
  

Liability in Case of Wrongful Acts

• If a partner is found guilty of fraud, negligence, or illegal activity, they become personally liable.
  
• Such liability may extend beyond their contribution in specific cases.
  
• The LLP is not bound by a partner’s unauthorized or unlawful action.s
  
• The law ensures that partners cannot misuse limited liability protection.
  
• Willful misrepresentation or misconduct results in unlimited personal liability
  

Contractual and Statutory Obligations

• Liability can be defined and altered within the LLP agreement.t
  
• Partners are bound to the LLP’s contractual commitments and statutory compliance.
  
• Breach of duties under the LLP Act may trigger civil or penal consequences.s
  
• Designated partners have additional legal responsibilities under the Act.
  
• Partners must fulfill obligations as agreed in the internal contract.
  

Liability Upon Exit or Death

• Liability of a partner ends once they resign, retire, or pass away.
  
• The LLP remains liable for obligations incurred before the partner’s exit.
  
• Legal heirs are not liable for the LLP’s future debts or claims.
  
• Exit procedures and liability terms must be defined in the LLP agreement.
  
• Liability after departure is restricted to the partner’s period of association.